Figure 9-3 Since 1953 the United States Has Imposed

Multiple Choice

Figure 9-3 Since 1953 the United States has imposed a quota to limit the imports of peanuts. Figure 9-3 illustrates the impact of the quota.
-Refer to Figure 9-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?

A) 10 million pounds
B) 28 million pounds
C) 30 million pounds
D) 40 million pounds